The Los Angeles Clippers’ attempt to move Kawhi Leonard to the Toronto Raptors has hit a major roadblock.
The NBA has paused the trade while its investigation into the Clippers remains ongoing, ESPN’s Shams Charania reported Thursday.
“The Raptors and Clippers were set to finalize this deal, do the trade call with the NBA,” Charania said on NBA Today. “The NBA has essentially paused that conversation until the end of their investigation.”
Charania added that Toronto has declined to accept any possible consequences connected to the inquiry.
“The Raptors decide today that they will not be assuming the risk of any discipline or any other fallout that could happen with Kawhi Leonard after the league investigation is over,” Charania said.
Clippers Say They Cooperated Fully
Getty Los Angeles Clippers owner Steve Ballmer stands courtside before a game against the Toronto Raptors. Ballmer has denied wrongdoing as the NBA continues investigating allegations involving Kawhi Leonard’s endorsement deal, a probe that has delayed the blockbuster trade sending Leonard back to Toronto.
The Clippers released a statement to ESPN saying they have cooperated with the investigation for 10 months.
“For the past 10 months, our organization has fully cooperated with an NBA investigation, participating in dozens of interviews, providing tens of thousands of documents, and facilitating access to our staff,” the Clippers said.
The team said it reached an agreement in principle on June 30 to trade Leonard to Toronto but later learned the deal could only be finalized if Raptors ownership assumed the risk tied to potential penalties involving Leonard’s contract.
“The investigation is ongoing, and we expect the trade to be finalized following its conclusion,” the Clippers said.
Toronto later echoed that timeline in its own statement.
The Raptors said the NBA informed them they would assume “the risk of any potential outcome of the investigation impacting Kawhi” if the trade proceeded now.
“In light of this, we will wait until the league’s investigation is complete,” Toronto said, while adding that it remains “eager to bring Kawhi back to Toronto” and hopes for “a swift resolution for our players, our organization, and our fans.”
Clippers Deny Salary Cap Allegations
The investigation centers on allegations that the Clippers circumvented the salary cap by funneling money to Leonard through his endorsement deal with Aspiration.
The Clippers again denied wrongdoing.
“At the heart of this investigation are Joe Sanberg and Aspiration,” the team said. “We did not funnel money to Kawhi Leonard through Aspiration.”
ESPN previously reported that Leonard, his uncle and business adviser Dennis Robertson, Clippers owner Steve Ballmer, team executives and Aspiration officials have been interviewed by investigators.
Under the NBA’s 2023 collective bargaining agreement, salary cap circumvention penalties can include fines, draft-pick forfeiture, personnel suspensions and potentially voiding a player contract.
Kawhi Leonard Deal Remains in Limbo
Getty Kawhi Leonard reacts during a game with the Clippers. Los Angeles’ blockbuster trade sending the two-time Finals MVP back to the Toronto Raptors has been paused while the NBA completes its investigation into the franchise.
The June 30 agreement would send Leonard to Toronto for Brandon Ingram, Gradey Dick, unprotected first-round picks in 2031 and 2033, a 2027 first-round pick swap and two second-round picks, according to ESPN.
For the Clippers, the deal would mark the end of Leonard’s six-year run in Los Angeles and continue the franchise’s shift toward a younger roster.
Instead, that reset is on hold.
Until the NBA completes its investigation, the Clippers cannot finalize one of the biggest moves of their offseason.
Clippers Get Troubling Kawhi Leonard Trade Update Amid NBA Probe